Wednesday, September 10, 2008

The perspective at mean

We are in the F period. What is significant is the bounce of the low took us from 17-20K net negative delta on big contracts into positive territory here at mean. Overall market is still - 42k.

The long opportunity off the retrace to the VWAP is getting a little profit taking. Volatile in spurts and the mean could mean consolidation here for some time. Lunch time just around the corner.

Oh yes. At the bottom, notice we made lower low. However, quite buying (controlled buying) took out the -ve delta from -17k to -11k right before the hook (the sucker play to the downside). The hook is sometimes needed for propulsion. Notice the late shorts bailing quickly adding fuel to the move as they got caught in a hole. This is a different picture again from yesterdays break of the 47 area.

Above the mean, we need to be able to facilitate business above mean at 30.75 with increasing volume ( not yet evident) to be able to test the hod and possibly globex high. We have resistance galore above 36 area.

Todays IB had a good short opportunity at the overnight VAH, both in the A and B periods high, after the dominant flow @ 6.36 AM to the downside. It made those highs with a net -ve delta.
So far we are balancing around yesterdays value. I had expected a steeper drop ( a hook) than what we had so far before we retrace some of yesterdays value (the notorious 80% rule).

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